"The cost of renting is often the largest outgoing many tenants will have, but it’s fair to say that the cost of a rental deposit poses a significant financial obstacle before they can even secure a rental property to call home"
- Sam Reynolds - Zero Deposit
Zero Deposit analysed the current cost of renting across every postcode of England and Wales before looking at what this means for the average tenant when it comes to the deposit required to secure a property at five weeks asking rent, or six weeks rent for tenancies of over £50,000 over 12 months.
The current average monthly rent across England and Wales is £1,294, meaning the average tenant is required to stump up a deposit to the tune of £1,493.
This cost is, of course, far higher in some areas compared to others and nowhere more so than the capital, which dominates the top 10 most expensive postcodes for tenant deposit costs.
The SW7 postcode in Kensington and Chelsea sits top with the average deposit costing an eye-watering £6,792. Westminster’s W1 postcode isn’t far behind with the average rental deposit sitting at £6,659.
The nearby SW1 and W8 postcodes are home to an average rental deposit cost of £6,182 and £6,167 respectively, while tenants looking to rent in Camden’s NW8 postcode will also have to stump up over £6,000 upfront for the pleasure.
Just two postcodes make the top 10 outside of London, the KT11 postcode in Elmbridge (£4,662) and Runnymede’s GU25 postcode (£4,463) - both of which are located in the South East.
Elsewhere across England and Wales, the following rank as the most expensive postcodes when paying out for a rental deposit: -
East of England: AL6, Welwyn Hatfield, East Hertfordshire and North Hertfordshire, £3,433.
South West: GL54 Cheltenham, Cotswold & Tewkesbury, £2,416.
West Midlands: B29, Birmingham, £2,222.
North West: WA15, Trafford, Manchester and Altrincham, £2,045.
Wales: SA2, Swansea, £1,862.
East Midlands: NN12, West Northamptonshire, £1,810.
Yorkshire and the Humber: YO1, York, £1,795.
North East: NE2, Newcastle upon Tyne, £1,569.
Sam Reynolds, CEO of Zero Deposit commented: “The cost of renting is often the largest outgoing many tenants will have, but it’s fair to say that the cost of a rental deposit poses a significant financial obstacle before they can even secure a rental property to call home.
"For the average tenant, this cost currently sits at almost £1,500 across England and Wales which is a sizable sum in itself. However, depending on where you want, or need to live, a rental deposit is often far higher.
"Tenants in London predictably face the highest cost but across the nation, there are plenty of postcode pockets that will see you pay above the regional average and then some. In practice, renters have to make significant concessions to secure a property, often downsizing and significantly compromising on their must-haves.”